21, September 2015

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The SNB left interest rates unchanged at the level of 0.75% in line with the experts' forecasts. The central bank also kept the target range for three-month the Libor rate in the range from -1.25% to -0.25%. The Swiss franc rate was still high despite some decrease. Also it was said that the negative interest rates and the SNB willingness to intervene in the foreign exchange market reduced some pressure on the franc.

The pair dollar/franc tried to continue the downward movement. The pair tested the support level of 0.9540 and rebounded upwards.

The price is finding the first support at 0.9650, the next one is 0.9540. The price is finding the first resistance at 0.9750, the next one is 0.9850.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is correcting.

Trading recommendations

We advise to short with the first target - 0.9540. When the pair consolidates below the first target, we can open deals to the level of 0.9370.